Management Theories PDF

Management Theories Management theories are a collection of ideas that recommend general rules for how to manage an organization or business. Management theories address how supervisors implemen...

Management Theories Management theories are a collection of ideas that recommend general rules for how to manage an organization or business. Management theories address how supervisors implement strategies to accomplish organizational goals and how they motivate employees to perform at their highest ability.  SCIENTIFIC MANAGEMENT THEORY SCIENTIFIC MANAGEMENT THEORY This theory is introduced by Frederick W. Taylor, who is also known as “The Father of Scientific Management”. Scientific management theory applies scientific approach in doing a task. It follows a step-by- step procedure in performing a specialized task in order to expedite the process that will increase worker’s productivity and establish the “best way” of doing the task. SCIENTIFIC MANAGEMENT THEORY Scientific management theory introduce the concept of a “Fair Day’s Pay for Fair Day’s Work”. This means that workers must be paid according to the amount produced. Taylor wants to encourage improved productivity through monetary compensation. (piece rate system)  Principles of Scientific Management 1. “Time and Motion” study- it is a systematic approach performed in order to determine how jobs are being done and identify which way will only take a little time and a little motion to finish a task. This replace the rule of thumb method (Hit or Miss Approach).  Principles of Scientific Management 2. Scientifically select and then train, teach and develop the workers. Workers are being chosen and train based on their abilities and skills to perform a specialized task that will eventually makes them to become experts of the job.  Principles of Scientific Management 3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with principles of science that has been developed. The managers work closely with the workers to supervise their performance and to ensure increase in productivity by following the required process.  Principles of Scientific Management 4. Divide work and responsibility almost equally between the management and the workers. This only means that both manager and the workers shares equal amount of responsibility wherein the managers handles the planning functions as the workers will be performing the tasks. Do you have any questions about Scientific Management Theory?  Review…Review…Review… Steps in Planning Function Scientific Management Theories Administrative Management Theories  ADMINISTRATIVE MANAGEMENT THEORY ADMINISTRATIVE MANAGEMENT THEORY This theory is developed by Henri Fayol, who is known as “The Father of Modern Management”. Administrative Management Theory focuses on the efficient implementation of organizational management practices. It emphasizes on how managers perform his m a n a g e r i a l fu n c t i o n s t h a t w i l l b o t h b e n e f i t t h e organization and the employees. ADMINISTRATIVE MANAGEMENT THEORY Administrative Management Theory promotes top-down approach. This means that the command will come from the top m a n a g e m e n t downwards to the last l e v e l o f t h e organizational structure. ADMINISTRATIVE MANAGEMENT THEORY Fayol’s 14 Principles of Management 1. Division of Labor Dividing the full work of the organization among individuals and creating departments is called the division of work. 2. Authority and Responsibility Authority must be equal to Responsibility. According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). The right to give orders should not be considered without reference to responsibility. Fayol’s 14 Principles of Management 3. Discipline Discipline means respect for the rules and regulations of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. 4. Unity of Command According to this principle, a subordinate (employee) must have and receive orders from only one superior (boss or manager). Fayol’s 14 Principles of Management 5. Unity of Direction One head and one plan for a group of activities with the same objective. All activities which have the same objective must be directed by one manager, and he must use one plan. 6. Subordination of Individual Interest The interest of one individual or one group should not prevail over the general good. The interest of the organizational goal should not be sabotaged by the interest of an individual or on the group. Fayol’s 14 Principles of Management 7. Remuneration Remuneration is the price for services received. Pay should be fair to both the employee and the firm. 8. Centralization In centralization, the authority is concentrated only in a few hands. However, in decentralization, the authority is distributed to all the levels of management. No org ani zat i on c an be c om pl e t e l y c e nt ral i ze d o r decentralized. Fayol’s 14 Principles of Management 9. Scalar Chain of Authority The chain of command, sometimes called the scalar chain, is the formal line of authority, communication, and responsibility within an organization. The chain of command is usually depicted on an organizational chart. 10. Maintenance of Order There should be an Order for material/things and people in the organization. Order for things is called Material Order and order for people is called ‘Social Order’. Material Order refers to “a place for everything and everything in its place.” Social Order refers to the selection of the “right man in the right place.” Fayol’s 14 Principles of Management 11. Equity/Fairness Equity is a combination of kindness and justice. It creates loyalty and devotion in the employees toward the organization. 12. Stability/Security of Tenure Employees need to be given fair enough time to settle into their jobs. An employee needs time to learn his job and to become efficient. Fayol’s 14 Principles of Management 13. Employee Initiative to General Interest Equity is a combination of kindness and justice. It creates loyalty and devotion in the employees toward the organization. 14. Promotion of Team Spirit or Esprit de Corps The management should create unity, co-operation, and team-spirit among the employees. Harmony, cohesion among personnel. It’s a great source of strength in the organization.  Do you have any questions about Administrative Management Theory? Organization and Management Ms. Lovely P. Miranda, LPT  BUREAUCRATIC THEORY BUREAUCRATIC THEORY This theory is introduced by Max Weber management is defined by clear set of rules division of labor promotes formal and impersonal relations develops a clear hierarchical structure of authority follows a legal-rational approach Do you have any questions about Bureaucratic Theory?  ORGANIZATIONAL BEHAVIOR (OB) APPROACH ORGANIZATIONAL BEHAVIOR (OB) APPROACH This theory is supported by Robert Owen, Mary Parker Follett, Hugo Munsterberg, and Chester Barnard. focus on analyzing and understanding the behavior of people within their groups and at work re c o g n i ze t h e p s yc h o - s o c i a l a s p e c t s o f e ve r y employees promotes human relations that helps people to learn how to get along well with others Do you have any questions about Organizational Behavior Approach?  TOTAL QUALITY MANAGEMENT (TQM) TOTAL QUALITY MANAGEMENT (TQM) This theory is proposed by quality experts, W. Edwards Deming and Joseph M. Juran focus on customer satisfaction both external and internal This theory give emphasis on how to meet the needs and demands of the external customers in terms of providing quality products and services and at the same time the internal which are the employees through providing continuous development and rewards system.  TOTAL QUALITY MANAGEMENT (TQM) TQM promotes the continuous improvement in the quality of both the products and services as well as the people. Total quality management is a much broader concept than just controlling the quality of the product itself. Total quality management is the coordination of efforts directed at improving c u s t o m e r s a t i s fa c t i o n , i n c r e a s i n g e m p l o ye e participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement.  TOTAL QUALITY MANAGEMENT (TQM) Fourteen Points in TQM 1.Create constancy of purpose for improvement of product and service. 2.Adopt a new philosophy. 3.Cease dependence on mass inspection. 4.End awarding business on price. 5.Improve the system of production and service constantly. 6.Institute training. 7.Institute leadership.  TOTAL QUALITY MANAGEMENT (TQM) Fourteen Points in TQM 8.Drive out fear. 9.Break down barriers between departments. 10.Eliminate slogans, exhortations, and numerical targets for the workforce. 11.Eliminate numerical quotas or work standards. 12.Remove barriers that prevent workers from taking pride in their workmanship. 13.Institute a vigorous program of education. 14.Take action to accomplish the transformation. Do you have any questions about Total Quality Management?  THEORY Z Theory Z Of Ouchi Is Dr. William Ouchi's so called "Japanese Management" style popularized during the Asian Economic Boom Of The 1980s. 'Theory Z' focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. T h e o r y Z m a n a g e m e n t t e n d s t o p r o m o t e s t a b l e employment, high productivity, and high employee morale and satisfaction. "Japanese Management" and Theory Z itself were based on Dr. W. Edwards Deming's famous "14 points". PLURALISTIC SOCIETY  PLURALISTIC SOCIETY Do you belong to any clubs or groups? Have you ever joined a local basketball team, participated in a Model UN program, or helped fundraise for your child's school? These are all ways that we are a part of a pluralistic society.  PLURALISTIC SOCIETY E Pluribus Unum, which is Latin for ''out of many, one.'' A pluralistic society is defined as a place where different religious, ethnic and cultural groups live together.  PLURALISTIC SOCIETY Cultural pluralism is a term used when smaller groups within a larger society maintain their unique cultural identities, and their values and practices are accepted by the wider dominant culture provided they are consistent with the laws and values of the wider society.  PLURALISTIC SOCIETY Philosopher Horace Kallen is widely credited as being the originator of the concept of cultural pluralism. Kallen's 1915 essay in The Nation, Democracy versus the Melting Pot, was written as an argument against the concept of the "Americanization" of European immigrants.  PLURALISTIC SOCIETY Diversity and pluralism How can people live together peacefully?  PLURALISTIC SOCIETY In an authoritarian system – one-party rule, theocracy, or even dictatorship – this problem is solved by giving one player (for example, a party or leader) the power to decide on everyone’s behalf what lies in the common interest.  PLURALISTIC SOCIETY In a democracy, citizens basically agree on a set of principles, on rules of procedure and rights that allow them to disagree on many issues, but which also offer the tools to enable them to reach agreement by non- violent means.  PLURALISTIC SOCIETY Such a social contract includes the principle of rule by the majority. This is why it is important to have legislation for human rights and freedoms built into the constitutions of democratic countries.  PLURALISTIC SOCIETY Every generation must understand this complex set of challenges in pluralist societies and how they may be met in a democratic community.